Published on 5/23/2008 in the Prospect News Structured Products Daily.
New Issue: HSBC USA prices $525,000 autocallable notes linked to ConocoPhillips, Exxon, Valero
By Angela McDaniels
Tacoma, Wash., May 23 - HSBC USA Inc. priced $525,000 of 0% autocallable notes due June 1, 2010 linked to the common stocks of ConocoPhillips, Exxon Mobil Corp. and Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically if the worst-performing stock closes at or above its initial price on any of eight quarterly auto redemption dates. Investors will receive par plus an annualized return of 25% to the redemption date.
The call dates are Aug. 25, 2008, Nov. 21, 2008, Feb. 23, 2009, May 22, 2009, Aug. 25, 2009, Nov. 23, 2009, Feb. 22, 2010 and May 24, 2010.
If the notes are not called, the payout at maturity will be par if the final price of each stock is greater than or equal to its barrier price - 75% of its initial price. If the final price of the worst-performing stock is less than its barrier price, the payout will be a number of shares of the worst-performing stock equal to par divided by that stock's initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying stocks: | ConocoPhillips (Symbol: COP), Exxon Mobil Corp. (Symbol: XOM) and Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $525,000
|
| Maturity: | June 1, 2010
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If the final price of the worst-performing stock is less than its barrier price, a number of shares of that stock equal to its exchange ratio; otherwise, par
|
| Call: | Automatically if the worst-performing stock closes at or above its initial price on an auto redemption date; payout will be par plus annualized return of 25% to redemption date
|
| Initial share prices: | $92.83 for ConocoPhillips, $93.67 for Exxon Mobil, $49.50 for Valero
|
| Barrier prices: | $69.6225 for ConocoPhillips, $70.2525 for Exxon Mobil, $37.125 for Valero; 75% of initial price
|
| Exchange ratios: | 10.7724 for ConocoPhillips, 10.6758 for Exxon Mobil, 20.2020 for Valero
|
| Pricing date: | May 21
|
| Settlement date: | May 29
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 3.75%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
